Business & Finance

HFF Secures Acquisition Financing for Mixed-Use Hotel, Office and Outparcel Asset Near St. Louis, Missouri

CHICAGO, IL. March 15, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged financing for the acquisition of Le Chateau and the Hilton St. Louis Frontenac, a mixed-use hotel, office and outparcel asset totaling 325,000 square feet in the St. Louis-area community of Frontenac, Missouri.

HFF worked on behalf of the borrower, Bucksbaum Retail Properties, to place the four-year, fixed-rate loan with Ladder Capital.

The 92.2-percent-leased asset comprises the 263-room Hilton St. Louis Frontenac, the Le Chateau 80,000-square-foot office building, a 7,132-square-foot Triad Bank outparcel lease and two Wells Fargo ground leases that total 60,078 square feet. The Hilton St. Louis Frontenac features 25,000 square feet of flexible meeting space, a state-of-the-art fitness center, seasonal outdoor pool, 24/7 business center and full-service restaurant located at 1335 South Lindbergh Boulevard. Completed in 1974, the hotel has undergone renovations throughout the years. The most recent renovations between 2012 and 2016 included enhancements and upgrades to the common areas and guest rooms. Le Chateau, which is famous for its open-cage elevator with intricate metal work, contains offices, retail space, a health club, restaurant, catering company and beauty salons. Located at 10403 Clayton Road, the building’s French village-style atmosphere is aided by 100-year-old bricks recovered from an abandoned local brewery that are part of the building’s exterior and a grand, open-air atrium detailed with railing made from genuine, hand-wrought Belgium iron. The Wells Fargo ground leases consist of 10401 and 10369 Clayton Road.

The property is situated on a total of 16.5 acres bound by Interstate 64, South Lindbergh Boulevard and Clayton Road in Frontenac, approximately 10 miles from both downtown St. Louis and Lambert – St. Louis International Airport. The property is also immediately adjacent to Plaza Frontenac, a luxury shopping center anchored by Saks Fifth Avenue and Neiman Marcus.

The HFF debt placement team representing the borrower was led by managing director Danny Kaufman and director Jeff Bucaro.

“We were thrilled to work with the team at Bucksbaum Retail Properties to secure this financing,” Kaufman said. “Le Chateau is a landmark asset in St. Louis. It will clearly continue to thrive and transform under Bucksbaum’s leadership.”

“The lending team at Ladder Capital performed flawlessly and really stepped up to support the acquisition process,” Bucaro added.

About Bucksbaum Retail Properties

Bucksbaum Retail Properties is a fully integrated owner and developer of retail real estate. In addition to suburban malls and urban oriented retail developments, the company is incorporating office, residential and hospitality uses into its projects. The firm is actively involved in understanding the relationship between a high-quality of life and the built environment. Bucksbaum Retail Properties is adapting and reusing existing real estate. Visit bucksbaumrp.com for more information.

About HFF

Holliday Fenoglio Fowler, L.P. (“HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

Coming Up In The May Online Hotel Business Review




Feature Focus
Eco-Friendly Practices: The Value of Sustainability
The hotel industry continues to make remarkable progress in implementing sustainability policies and procedures in their properties throughout the world. As a result, they continue to reap the benefits of increased profitability, enhanced guest experiences, and improved community relations. In addition, as industry standards are codified and adopted worldwide, hotels can now compare how their operations measure up against their competitors in terms of sustainable practices and accomplishments. This capacity to publicly compare and contrast is spurring competition and driving innovation as hotels do not wish to be left behind in this area. Water management and conservation is still a primary issue as population growth, urbanization, pollution and wasteful consumption patterns place increasing demands on freshwater supply. Water recycling; installing low-flow fixtures; using digital sensors to control water usage; and even harvesting rainwater are just a few things that some hotels are doing to preserve this precious resource. Waste management is another major concern. Through policies of reduce, reuse and recycle, some hotels are implementing “zero-waste” programs with the goal of substantially reducing their landfill waste which produces carbon dioxide and methane gases. Other hotels have established comprehensive training programs that reinforce the value of sustainability. There is employee engagement through posters and quizzes, and even contests are held to increase innovation, sensitivity and environmental awareness. Some hotels are also monitoring a guest’s energy usage and rewarding those who consumed less energy with gifts and incentives. The May issue of the Hotel Business Review will document how some hotels are integrating eco-friendly practices into their operations and how they and the environment are benefiting from them.